France's 10-year yield is up nearly 80 basis points since early September, close to 5% and the highest since 2002. With euro area inflation at 3.8%, the bond market is delivering a tightening the European Central Bank never voted for.
Euro area HICP hit a three-year high of 3.8% in September, beating the 3.6% consensus as energy inflation jumped to 18.8% ahead of the ECB's 29 October meeting. Source
The European Central Bank (ECB) lifted its deposit rate to 2.50% in September. This week the French bond market did some tightening of its own. France's 10-year yield has climbed nearly 80 basis points since the start of September and now sits just short of 5%, the highest since July 2002, Reuters reported. Euro area finance ministers meeting in Luxembourg told Paris to pass a 2027 budget, and officials ruled out ECB secondary-market bond purchases.
